ARC provided a workshop for a client that started its successful supplier selection of software for asset information management. The scope of the engagement expanded to include plant engineering design software. The stakeholder executives gained consensus for a short list that accelerated the vendor selection process, assured the best choice, and provided faster time-to-benefit.
The company has 30 percent more assets per dollar of revenue than its competitors which converts to 30% lower ROA. Also, the additional cost of maintaining these assets deteriorates profits. The corresponding negative impact on both the balance sheet and P&L statement significantly lowers stockholder value. The company needs to change its approach to asset management to rationalize assets, convert as much as possible to cash, lower maintenance costs, and improve both the balance sheet and P&L sheet.
How does central engineering manage assets and maintenance strategies when there are over 400 plants in every time zone? Without good asset information management, it can’t.
At the corporate headquarters, ARC conducted a workshop that included corporate engineering executives and ARC analysts. Engineering presented a situation review. ARC presented a survey of software suppliers and their capabilities. An interactive and collaborative review ensued which ended with a short-list of suppliers.
The discussion revealed a need to consider the engineering tools for plant upgrades associated with the rationalization. This plant design software would also improve the speed of modifications needed for new products providing faster time-to-market. ARC involved its analyst for plant design software, and conducted a review remotely via webinars. This led to an associated short list of suppliers.
The client emerged quickly from a state of indecision due to the vast array of choices, disparate opinions, and supplier induced fear uncertainty and doubt (FUD). The executive leadership gained consensus, and moved to initiating requests for proposals from the suppliers on the short list. They are now clearly on the path towards the goal of improving ROA and shareholder value.